Morgan Stanleyâs first-quarter profits are unlikely to have hit record levels, according to analysts. The bank will report its results on Wednesday.

Analysts are not expecting the group to match the searing pace set by US rivals Goldman Sachs, Lehman Brothers and Bear Stearns, all of which powered to record profits in the first three months of the year.

Morgan Stanley had a tough year in its institutional securities business in 2005 and may reveal net profits to the end of February of more than $1.2bn (€993m), down 18% from $1.47bn. One analyst said $1.2bn was a conservative estimate, adding that Morgan Stanley may report profits of up to $1.3bn if its trading business had performed well.

Equity and fixed income trading revenues reached record levels at the three Wall Street houses, which reported figures last week, helping the banks to beat analyst forecasts.

The analyst said: “We are expecting trading revenues to be up at Morgan Stanley but, while institutional securities is its biggest business, it has other divisions that will have a say in the direction of profits.”